Hot Tips: Clarifying Retained Earnings (Family Advocate, Vol. 33, No. 2)
Christopher P. Casey & James M. Godbout
BY CHRISTOPHER P. CASEY & JAMES M. GODBOUT Clarifying Retained Earnings Many businesses will show an entry on their financial records for retained earnings. Business-owning spouses often argue that retained earnings merely represent an accounting function, while nonbusiness-owning spouses contend that retained earnings represent monies that should have been distributed. Neither position addresses the most basic underlying question: do liquid assets exist that can be distributed or liquidated and...